South africa’s mango exports have plummeted dramatically in the past five years, according to Jaco Marais, managing director of Katopé Subtropical RSA.
Marais told FPJ South African mango exports have dropped from around 2.5 million cartons in 2001 to just 600,000 cartons this year. And as a result Katopé has dropped its market share to one per cent.
“In the past, 40 per cent of our volumes were exported, now it’s only 10 per cent. We have turned our focus to more viable products, such as avocado,” Marais said.
The rapid decline has occurred due to forces beyond the South African industry’s control and has compelled players to revaluate their ability to contribute, Marais claimed.
“It is a natural evolution. If we can’t compete against countries like Brazil in fresh, the answer for South Africa might be on the processsing side - the market for dried fruit looks promising,” he said.
“It is also related to the exchange rate. We are now getting something like 12.5 rand to the pound, which may give you a competitive advantage in the short-term but is not sustainable.”
In terms of weather and costs, South Africa is at a distinct disadvantage, rendering it less competitive than other large-scale producers, especially in Europe and South America.
“The climate is dificult here. Peru grows mangoes in desert conditions and no rain means no diseases. And their costs are around half of ours. Spain, also, has no disease pressure because they get winter rains,” Marais said.
